Tax Warrior Chronicles

Understanding REITs and Their Place in Your Portfolio

Posted on Fri, Mar 06, 2020

By: Stuart Shikiar, Albert Sipzener, Lockwood Sloan and Sam Shikiar


Real estate has been a time-tested addition to investor portfolios. Real Estate Investment Trusts, or REITs, provide an opportunity for tax-advantaged income investing. Today’s post features a discussion by the team at Shikiar Asset Management, a New York-based registered investment advisor and long-time friend of Drucker & Scaccetti.  Here is what they have to say about REITs…

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REIT Conversions Growing: Could Your Business Qualify?

Posted on Mon, Nov 10, 2014

Real estate investment trusts (REITs) have long been tax-favored vehicles for promoting investment in real estate. They can escape entity-level taxation as long as 90% or more of its income is paid to the shareholders. There has been a growing trend of companies seeking REIT status that, in the past, did not fall cleanly within the traditional REIT model. In our previous blog, Why Every REIT Should Know About Taxable REIT Subsidiaries, we laid out the basic principles of REIT taxation.  Here we will summarize those basics and highlight several rulings and developments in the area that have recently made REIT status more widely available.

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Why Every REIT Should Know About Taxable REIT Subsidiaries

Posted on Mon, Feb 17, 2014

A real estate investment trust (REIT) is an organization that is taxable as a corporation that invests principally in real estate and mortgages and elects special tax treatment. A REIT, in contrast to other corporations, may deduct dividends it distributes to its shareholders allowing it to serve as a conduit. However, a REIT election is available only if the corporation satisfies certain requirements in the Internal Revenue Code. These requirements include provisions on the REIT’s organization, structure, distributions, and perhaps most importantly, its sources of income.

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Taking the “Real Estate” Out of REITS for Tax Purposes

Posted on Tue, Apr 30, 2013


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